I spent a few minutes playing around with the popupmenu
support for floating palette. Also I added the Sapphire.Add to this
floating palette for you guys to evaluate. Attached is a patch for getting
submenus to work. See screenshot of them in action:

Also, I noticed in the code that the Sapphire.Add
context is not added to the floating palette. What do you guys think
about adding that? Currently in my diagram editor I have a Sapphire.Add
context on the node and would like to see if it would be possible to have it
show up as well.

Also, as you can see on my screenshot, some of my
action factories don't actually render any actions when nodes have particular
state (see the first action on top left in my screenshot). So I
think we should protect the adding of actions to the floating palette to check
to see if they are actually enabled.

Looking at the floating palette code it seems that it
supports the notion of popup menus. Can we take advantage of this for
when actions have multiple handlers (as in the case of action handler
factories)?

I just synced and see the new floating palette (very nice!).
However, I see some issues with the floating palette and the action handler
factories that I have added to a particular node. See this
screenshot:

You can see that I have 3 action handler factories, one for
Sapphire.Add, and two for Sapphire.Edit (that I have added in my
sapphire-extension.xml). Sometimes these nodes action handler
factories have sub menus, but I don't see these on the floating palette. It
just seems to execute the first action from the sub menu.